The Consequences of Rising Oil Prices

Prices of crude oil increased by approximately 45 percent in the last 12 months. Consequences of the rising oil prices are also felt in the Netherlands, where consumers pay approximately nine percent more for petrol 95 octane and nearly 19 percent more for diesel fuel in January 2017, compared to the same month in the previous year.

The relatively small increase in fuel prices in comparison to the crude oil price rise is mainly a result of the influence of excise and VAT, which together make up for approximately two-thirds of the total fuel price in the Netherlands. As a result, fuel prices will always increase and decrease at a lesser pace than the worldwide crude oil prices.